The Wall Street has shown great interests in Chinese start-ups this year, much thanks to the country’s growing strength in different areas. Statistics shows that 23 Chinese companies were listed in the US in the first three quarters of this year, raising over 7 billion US dollars, far exceeding US companies.
Statistics from Thomson Reuters show that as of August 25, Chinese companies raised 7.3 billion US dollars via IPOs in the US this year, an increase of 490.6 percent same period last year, the highest level since 2014. In breakdown, the amount raised on Nasdaq was 4.9 billion U.S. dollars, while that raised on the New York Stock Exchange was 2.4 billion U.S. dollars.
According to a study by research firm Renaissance Capital, a total of 23 Chinese companies conducted IPOs in the US in the first three quarters of this year, a record number in 8 years.
The dramatic increase is because new shares are easy to be valuated high compares with Europe and Asia, said Jim Kony, head of the Americas Capital Markets Department of Bank of America Merrill Lynch. He added this is mainly related to the investment environment.
These 23 companies come from different industries, including education, financial services, retail services, Internet-based finance, video services amd manufacturing. In general, Internet technology companies account for a relatively large proportion.
In terms of the amount of funds raised, iQiyi was the largest IPO of China in the US on Nasdaq, raising 2.4 billion US dollars. Following closely behind is Pinduoduo, raising 1.6 billion US dollar. Nio ranked third place, which is listed on the New York Stock Exchange and raised 1 billion US dollars.
Statistics also show that as of August 25, China accounted for 35.5 percent in the global IPOs market, raising a total of 51 billion US dollars. Five of the world's top 10 IPOs are from China. The US followed closely, with 20.4 percent, raising a total of 29.3 billion US dollars, up 24.9 percent year-on-year.
Bob McCoy, senior vice president of NASDAQ's listed services division, said that he is optimistic about the prospects of China's IPO. He believes that the price of Chinese companies listed in the US will recover strongly after a period of weakness and is expected to double this year. McCoy said that an important factor behind the stock price rebound is the profound understanding of the US stock value by young Chinese entrepreneurs.
For the fourth quarter, Renaissance Capital said it expects China's IPOs in the US will take the lead, even if US companies are expected to accelerate in the quarter.
Translated by Coral Zhong
Statistics from Thomson Reuters show that as of August 25, Chinese companies raised 7.3 billion US dollars via IPOs in the US this year, an increase of 490.6 percent same period last year, the highest level since 2014. In breakdown, the amount raised on Nasdaq was 4.9 billion U.S. dollars, while that raised on the New York Stock Exchange was 2.4 billion U.S. dollars.
According to a study by research firm Renaissance Capital, a total of 23 Chinese companies conducted IPOs in the US in the first three quarters of this year, a record number in 8 years.
The dramatic increase is because new shares are easy to be valuated high compares with Europe and Asia, said Jim Kony, head of the Americas Capital Markets Department of Bank of America Merrill Lynch. He added this is mainly related to the investment environment.
These 23 companies come from different industries, including education, financial services, retail services, Internet-based finance, video services amd manufacturing. In general, Internet technology companies account for a relatively large proportion.
In terms of the amount of funds raised, iQiyi was the largest IPO of China in the US on Nasdaq, raising 2.4 billion US dollars. Following closely behind is Pinduoduo, raising 1.6 billion US dollar. Nio ranked third place, which is listed on the New York Stock Exchange and raised 1 billion US dollars.
Statistics also show that as of August 25, China accounted for 35.5 percent in the global IPOs market, raising a total of 51 billion US dollars. Five of the world's top 10 IPOs are from China. The US followed closely, with 20.4 percent, raising a total of 29.3 billion US dollars, up 24.9 percent year-on-year.
Bob McCoy, senior vice president of NASDAQ's listed services division, said that he is optimistic about the prospects of China's IPO. He believes that the price of Chinese companies listed in the US will recover strongly after a period of weakness and is expected to double this year. McCoy said that an important factor behind the stock price rebound is the profound understanding of the US stock value by young Chinese entrepreneurs.
For the fourth quarter, Renaissance Capital said it expects China's IPOs in the US will take the lead, even if US companies are expected to accelerate in the quarter.
Translated by Coral Zhong
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